Five Benefits of the Obama Plan
The president's 75 billion dollar Housing Fix-it Plan has arrived and because people are asking what its all about, here is my expert analysis. In a nutshell, the plan offers to make house payments more affordable for hard-pressed homeowners and contains five major benefits. Here they are:
1. It Helps Hard-Pressed Homeowners Stay in their Homes: This initiative will reach millions of responsible yet struggling homeowners who can no longer afford their mortgage payments because of the current recession, yet cannot sell their homes because prices have fallen so significantly. Millions of hard-working families have seen their mortgage payments rise to 40 or even 50 percent of their monthly income ". The Homeowner Stability Initiative helps those who commit to make reasonable monthly mortgage payments to stay in their homes " providing families with security and neighborhoods with stability.
2. The Plan only helps Homeowners wanting to stay in their homes. Real estate investors must look elsewhere.
3. The Initiative Aids Neighborhoods. Because a foreclosed home often attracts vagrants, vandals and graffiti, not to mention being an eyesore with the dried grass landscaping and yellowed newspapers piled up on the stoop, stopping a home from becoming a foreclosure benefits the entire neighborhood. Not to mention the rock-bottom values that the foreclosed home will get from the new purchaser.
4. Supports Homeowners at Eminent Risk of Foreclosure. Usually a homeowner does not qualify for loan modification unless he can show that he is behind by several payments. This new plan provides support for households at risk " even though the homeowner may not yet be late on his mortgage payments.
5. The Plan helps to restructure total Debt. The financial stability part of the plan is to create payment plans that can be kept by the homeowner " not pipe dream payments. By working in conjunction with Fannie Mae and Freddie Mac to standardize loan modifications, the Treasury Department hopes to do just that.
The Financial Stability Plan's goal is to bring back a sense of security to the struggling real estate market. The plan has been designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Plunging house prices, for example, make it harder for purchasers to obtain new loans " even with good credit, because lenders concerned about the true value of homes, simply refuse to extend credit for fear that they may be in the same situation five years down the road.
The Obama Housing Fix-it Plan has much more to it. Parts of it involve granting incentives to lenders who postpone foreclosures, paying down principal for owners who stay in their property for five years, and even giving incentives to people who successfully modify loans.
The Treasury Department will be using the full power of Fannie Mae and Freddie Mac to standardize guidelines for loan modifications. And the benefit not talked about to consider is this one: by pumping 75 billion into the economy, the administration is giving the economy a sudden jolt that might be felt as quickly as June. The word on the street is that purchasing a home now and renting it out may prove to be a much safer bet than keeping the money in the bank!
1. It Helps Hard-Pressed Homeowners Stay in their Homes: This initiative will reach millions of responsible yet struggling homeowners who can no longer afford their mortgage payments because of the current recession, yet cannot sell their homes because prices have fallen so significantly. Millions of hard-working families have seen their mortgage payments rise to 40 or even 50 percent of their monthly income ". The Homeowner Stability Initiative helps those who commit to make reasonable monthly mortgage payments to stay in their homes " providing families with security and neighborhoods with stability.
2. The Plan only helps Homeowners wanting to stay in their homes. Real estate investors must look elsewhere.
3. The Initiative Aids Neighborhoods. Because a foreclosed home often attracts vagrants, vandals and graffiti, not to mention being an eyesore with the dried grass landscaping and yellowed newspapers piled up on the stoop, stopping a home from becoming a foreclosure benefits the entire neighborhood. Not to mention the rock-bottom values that the foreclosed home will get from the new purchaser.
4. Supports Homeowners at Eminent Risk of Foreclosure. Usually a homeowner does not qualify for loan modification unless he can show that he is behind by several payments. This new plan provides support for households at risk " even though the homeowner may not yet be late on his mortgage payments.
5. The Plan helps to restructure total Debt. The financial stability part of the plan is to create payment plans that can be kept by the homeowner " not pipe dream payments. By working in conjunction with Fannie Mae and Freddie Mac to standardize loan modifications, the Treasury Department hopes to do just that.
The Financial Stability Plan's goal is to bring back a sense of security to the struggling real estate market. The plan has been designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Plunging house prices, for example, make it harder for purchasers to obtain new loans " even with good credit, because lenders concerned about the true value of homes, simply refuse to extend credit for fear that they may be in the same situation five years down the road.
The Obama Housing Fix-it Plan has much more to it. Parts of it involve granting incentives to lenders who postpone foreclosures, paying down principal for owners who stay in their property for five years, and even giving incentives to people who successfully modify loans.
The Treasury Department will be using the full power of Fannie Mae and Freddie Mac to standardize guidelines for loan modifications. And the benefit not talked about to consider is this one: by pumping 75 billion into the economy, the administration is giving the economy a sudden jolt that might be felt as quickly as June. The word on the street is that purchasing a home now and renting it out may prove to be a much safer bet than keeping the money in the bank!
posted by Debt Consolidation Loan at
9:20 AM
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